Division of Foreign Policy Research Study Group of European Integration Working Paper No. 1 July 1996 The EU Needs a Socially Balanced Fiscal Policy and an Active Labour Market Policy Ludwig Schubert 1. European Monetary Union is necessary 2. Stability and employment 3. The critical phase prior to the start of Monetary Union 3.1 The convergence criteria 3.2 Growth and employment 3.3 The task ahead 4. Stability, employment and the social dimension after the establishment of Monetary Union Conclusion Friedrich Ebert Foundation, Research Institute, Division of Foreign Policy Research 53170 Bonn, Tel.:+49-228/883-212, Fax: 883-625